features_of_globalisation.gif (7723 bytes) Philippines (Tony Salvador)

[Homepage] [Study Circles] [Help] [Project Library] [Searching the Internet]
[Session1] [Session 2] [Session 3] [Session 4] [Session 5] [Session 6]


SESSION TWO: FEATURES OF GLOBALISATION


Features of globalization present in the Philippines

The Philippines has adopted the neo-liberal economic framework and has opened the economy to globalization. Consistent with the neo-liberal agenda, the government has resorted to deregulation, privatization, and
liberalization. Thus, competition has become more intense as market forces dominate the entire economy. It is the global economy that dictates the prices of goods in the international market.

At the same time business has become more ruthless in suppressing labor rights.

Companies are resorting to labor flexibility, the most notorious of which is casualisation and contractualisation. Outsourcing and sucontracting have also become prevalent. This is specially the case in the garments industry,
one of the top exporters in the country. Thus, the number of regular employees is decreasing. Wages are too low, even as the profits are astronomical. (A leader from the ceramics manufacturing firm said that although the company is earning a lot, it refuses to pay decent wages.)

Moreover, many companies are using globalization in order to threaten workers with the closure of business establishments.

Companies are also becoming very strict in monitoring the efficiency and productivity of workers. Unfortunately, they use these in order to a give semblance of legality to the dismissal.

The entire concept of doing business is changing: core-periphery hiring, subcontracting, re-location of factories where the cost of labor is lowest.

This is further aggravated by high technology which has caused the loss of jobs since businesses need less and less employees.

Government should improve social services, including the provision of safety nets for those who lose their jobs. However, the government has no political will. IT has also been observed that it has become difficult to
borrow money from the Social Security System since the latter seem to short of cash.

The participants opine that globalization is a system crafted by businesspersons around the world in order to benefit corporate interests.

Hence, business is further improving its capability to increase its profits.

Unfortunately, the government plunged us into globalization without the necessary preparation such as improvement of our industries, safety nets for workers, protection of vulnerable industries. Worse, its policies aggravate even further the adverse effects of globalization: a bank dedicated to rural development gives loans to companies in order to build
golf course; and the government has not done anything to address the issue of casualisation and contractualization of labor, even as security of tenure has in recent years become the most serious problem of the labor sector.

Since it cannot provide adequate employment opportunities, the government continues with the policy of sending different kinds of Filipino workers, including seafarers, maids, factory workers, clerical employees, technical
employees, etc.

It is very difficult to organize since workers automatically associate unions with loss of jobs. Thus, they do not trust in the union or in its ability to fight for their rights. But at the same time, there are still a lot of workers who have faith in the ability of unions to defend workers' rights. Still, the rate of unionization is very low. Workers have less trust in unions, and are scared that they will lose their jobs should they join unions.

The government is implementing trade liberalization, to the detriment of the workers. Consumers are buying imported goods because they are cheaper even as the quality is better.

The Philippines government is selling off its assets including the profitable ones such as a petroleum gas company and a water utility company.

Also, the government is trying to cut down on cost although it cannot even deliver the most basic of social services.

There were those who were initially of the opinion that globalization are good for the masses since prices of goods will go down. However, they late found out that prices have not decreased. They also found out that local goods couldn't compete since imported ones are simply too cheap.

Because they are paid in US dollars, it would seem that seafarers are earning a lot. However, their pay is much lower than those from the developed countries and is even much lower than their actual contribution.

Once they join unions, they will be immediately placed by the placement agencies on the "blacklist". From then on, nobody will hire them. However, there still those who are not afraid to join the union knowing that the International Transport Federation will support them.

It is very difficult to organize since workers automatically associate unions with loss of jobs. Thus, they do not trust in the union or in its ability to fight for their rights. But at the same time, there are still a lot of workers who have faith in the ability of unions to defend workers' rights. Still, the rate of unionization is very low. Workers have less trust in unions, and are scared that they will lose their jobs should they join unions.


Similarities

Privatization has become more rampant. Competition has intensified

Spin-off corporations: a corporation is divided into different corporations through the process of spinning-off certain departments or functions and then incorporating them as separate business entities.

The different countries are following the dictates of the IMF/WB, including the rules on borrowing money and the corresponding conditionalities.

Unions maintain their strength and their ability to fight for workers' rights. If not for the unions, perhaps all workers would have become casuals or contractuals.

Increase in unemployment, increase in the number of casual and contractual employees.

Many companies shift to modern technology, multi-skilling, job combination, and labor flexibility - all to the prejudice of the workers.


Differences:

Unions can still be trusted to fight for workers rights and against globalization.

It seems that in the Philippines, it is easier for dismissed workers to move to the informal sector.


Responses to some of the questions:

Labor organizing is very litigious in nature, thereby making it easy for employers to employ legal maneuvers to bust the union or at least delay the collective bargaining benefits.

At the enterprise level, unions continue be very influential.


mail.gif (3995 bytes) Send mail: